The cash account reflects a business's cash inflows and outflows. Management uses this information to plan for the company's future. Similarly, you can analyze the cash inflows and outflows of your checking account to plan for your financial future.

The goal of this assignment is for you to apply the business concepts you are learning in this course to yourself. By completing a personal cash flow audit, you can make informed decisions about spending and saving.

 

 Take a moment and think about how you spend your money in a month. List your cash inflows, which is the money you take in each month. This could include your salary, rental income, and interest from savings accounts. Then list your monthly expenses, which might include rent, utilities, your cell phone bill, and groceries. Remember to include everything you spend money on.

Note: You do not need to share this list with anyone. Ask yourself these questions:

1. How much of the money you spend each month is for things you need, like rent, mortgage, utilities, insurance, etc.?
2. How much is for things you want, like trips to the local coffee shop, subscriptions to streaming services, manicures, etc.?
3. When you look at the amount of money you make and the amount of money you spend each month, do you have a net income or a net loss?

 

here  you will use the knowledge you have gained throughout the term and answer the following questions:

1. Did anything on your list surprise you? Did you see areas where you could decrease your cash outflows or increase your inflows to put yourself in a better financial position in the future?
2. How can you apply what you learned in this course to plan for a significant purchase, like a home, car, or vacation? Would you add to your savings account or reduce your liabilities?
3. What is one action you can start today to help improve your cash inflows or outflows?
4. How will you grow your knowledge so you can continue to make informed decisions about your cash inflows and outflows? How often will you audit your personal cash flow statements?

Answer rating: 100% (QA)

Reflecting on your personal cash inflows and outflows can provide valuable insights into your financ... View the full answer